EBRD may back Turkey’s $30bn power project

The European Bank for Reconstruction and Development (EBRD) is considering backing a major electricity transmission project in Turkey, as Ankara earmarks billions of dollars for the power sector.

Turkey intends to quadruple renewable energy generation capacity by the ​end of 2035 and build ⁠new nuclear power plants. The proposed transmission network, which is estimated to require $30 billion, will provide ⁠power to consumption centres and export surplus to neighbouring European countries.

The lender is reviewing the big-ticket $30 billion project, the Daily Sabah newspaper reported, quoting EBRD president Odile Renaud-Basso.

Ankara is in discussions with the World Bank to secure up to $6 billion to upgrade electricity transmission infrastructure, the report said.

EBRD investment in Turkey will ​remain very ⁠high this year,” she said. The bank has committed €2.7 billion ($3.1 billion) to 54 projects in Turkey in 2025.  

Last month Turkey reached a preliminary agreement for $6.75 billion to fund the Northern Railway Crossing Project, a rail line to strengthen freight and passenger connections between Asia and Europe.

Renaud-Basso said widening of the US-Israel war on Iran poses a risk to economic growth, although the impact will depend on how long the conflict continues.

The conflict could reduce risk capital for the region, she said, adding that the economic fallout has so far been limited, except in Lebanon.

The US-Israel and Iran conflict started on February 28 and widened with Tehran targeting regional countries.

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